India gets $37 mn World Bank fund for water development project

New Delhi: The government Tuesday signed an agreement with World Bank for USD 37-million loan to support Himachal Pradesh Mid-Himalayan Watershed Development Project.

"The Government today signed a USD 37 million credit agreement with the World Bank for the ongoing Himachal Pradesh Mid-Himalayan Watershed Development Project to support the Government of Himachal Pradesh build sustainable watershed treatment models," an official release said.

The original USD 60 million Mid-Himalayan Watershed Development Project is aimed at reversing the process of degradation of the natural resource base, improve productivity, and raise rural household incomes, it added.

The agreement was signed by Prabodh Saxena, Joint Secretary, Department of Economic Affairs and Onno Ruhl, Country Director, World Bank, among others.

"The project will be financed by a credit from the International Development Association (IDA) - the World Bank's concessionary lending arm - which provides interest-free loans with 25 years to maturity and a grace period of five years," the statement said.

The ongoing project has converted about 9,000 ha of rain fed area into irrigated land through watershed management techniques, it added.